Normally, if the rising price of gold, the dollar falls. For this reason, investors in gold and try to offset the revenue losses against the dollar. But also tend to maintain their purchasing power over time, investors tend to buy the currency to inflation and currency fluctuations fight.
The purchasing power of many currencies generally declined due to the impact of higher prices for goods and services, such as gold in recent years. Big investors like Jim Rogers are very optimistic, what the market for commodities for the next decade.
Reasons to invest in gold.
1. Gold does not lose its value every day, like paper money. Gold is not affected by inflation or devaluation, because only a limited natural supply of precious metals.
2. Gold is considered a paradise for investment. Gold has shown that the performance and years of crisis or war, when all the other investment solutions, often the loss of value.
3. Gold is not under political control. Governments and central banks in May to try to influence prices through the purchase or sale of gold, but it is still a free market.
4. Currently, the gold reserves are limited, because there are limited resources available, while demand in countries like India and China added to their reserves has experienced a record level.
5. It is a simple investment. It is generally accepted as payment.
6. It is safe and profitable for investors.
7. The main use is diversity in the country in the reserve. There is very little gold to sell, and that accumulate as a reserve, it should increase in the price.
8. Allows multiple forms of investment. Blocks, savings bonds, futures and options on mutual funds gold.
9. Gold is regarded as the best investment in times of crisis.
10. Do not pay the VAT (value added tax) on purchases (not), but to pay interest on the role and behavior of physical records.